What is the funding APR?

Funding is quoted per interval, so the numbers are tiny. 0.0010 percent an hour looks like nothing. Funding APR multiplies the current rate by the number of intervals in a year: 8,760 for hourly funding, 1,095 for eight-hour funding.

Run the math. 0.0010 percent an hour times 8,760 is about 8.8 percent APR. An eight-hour rate of 0.01 percent times 1,095 is about 11 percent. Two numbers that looked unrelated now sit on one scale, and you can see which venue charges longs more and by how much.

It is a snapshot. The formula assumes the current rate lasts twelve months, which never happens, because funding follows positioning and can swing from strongly positive to negative within hours. It also ignores compounding. That is why it is an APR and not an APY.

Traders use it to size carry trades and to spot leverage that has become expensive. People fixate on the level. The distance from the usual range tells you more. 40 percent on a coin that normally sits near 10 is news. A move from 9 to 14 is mostly noise.

Also called: annualized funding, funding rate APR.

In the Funding rates widget the APR sits right beside the hourly rate for active Hyperliquid markets, and a footnote admits the figure assumes the rate never moves. Hyperliquid markets does the conversion across venues: its Funding view annualizes Binance and Bybit from their own intervals, often 4 or 8 hours, so they sit on one scale with the hourly Hyperliquid rate. Solana edge carries funding APR for SOL and the Solana tokens that also list as Hyperliquid perps. Those same tokens are the only ones a Price alert can watch by funding APR.

• Price alert
• Funding rates
• Hyperliquid markets
• Solana edge

• Funding rate
• APY vs APR
• Funding rate arbitrage
• Basis